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| 680985077 | globalization | trend away from distinct national economic units and toward one huge global market McDonald's Global Success: local adaptations (local suppliers, local employees) and global standardizations (global supplies, uniform quality and service, same training and customer experience)-- In India, couldn't serve beef = lamb, chicken, fish and more veggie options. | 1 | |
| 680985078 | globalization of markets | moving away from an economic system in which national markets are distinct entities, isolated by trade barriers and barriers of distance, time, and culture, and toward a system in which national markets are merging into one global market. the internet makes an easy marketplace, and mass media markets for industrial goods and materials that serve a universal need the world over (commercial jet parts, computer software etc) | 2 | |
| 680985079 | globalization of production | trend by individual firms to disperse parts of the productive processes to different locations around the globe to take advantage of national differences in the cost and quality of factors of production. transportation technology makes dispersal of production cheaper Vizio is only made up of 400 employees-- everything is outsourced (manufacturing, logistics and support, marketing) other than design. Hospitals can outsource radiology work to India so its ready by the morning (use of time zone differences) | 3 | |
| 680985080 | international trade | occurs when a firm exports goods or services to consumers in another country | 4 | |
| 680985081 | foreign direct investment | direct investment in business operations in a foreign country | 5 | |
| 680985082 | multinational enterprise | a firm that owns business operations in more than one country | 6 | |
| 680985083 | World Trade Organization | organization that succeeded the General Agreement on Tariffs and Trade as a result of the successful completion of the Uruguay Round of GATT negotiations promoted the lowering of barriers to cross-border trade and investment. 97% of world trade are part of the group. If GATT violator refuses to comply with rulings, WTO allows other states to impose trade sanctions | 7 | |
| 680985084 | collectivism | a political system that emphasizes collective goals over individual goals many asian countries, communist regimes | 8 | |
| 680985085 | individualism | an emphasis on the importance of guaranteeing individual freedom and self-expression western countries, democratic and free markets | 9 | |
| 680985086 | ethnocentrism | tendency to view one's own culture and group as superior to all other cultures and groups | 10 | |
| 680985087 | command economy | an economic system in which the government plans the goods and services that a country produces, the quantity in which they are produced, and the prices at which they're sold | 11 | |
| 680985088 | communist totalitarianism | a version of collectivism advocating that socialism can be achieved only through a totalitarian dictatorship China, Vietnam, Laos, North Korea and Cuba | 12 | |
| 680985089 | economic freedom | the freedom to own property, to make a profit, and to make choices about what to produce, buy, and sell | 13 | |
| 680985090 | civil law | a system of law based on a detailed set of written laws and codes judges only have the power to apply the law as it is | 14 | |
| 680985091 | common law | a system of law based on tradition, precedent and custom degree of flexibility, judge has the power to interpret the law so it applies to the unique situation. each new interpretation sets a precedent for the next | 15 | |
| 680985092 | Human Development Index | an attempt by the UN to assess the impact of a number of factors on the quality of human life in a country Gross Domestic Product per capita (total value of all goods/services produced), life expectancy, education level | 16 | |
| 680985093 | market economy | an economic system of which the interaction of supply and demand determines the quantity in which goods and services are produced | 17 | |
| 680985094 | patent | grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention | 18 | |
| 680985095 | property rights | the bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource can be violated in two ways- through private action (theft, piracy) and through public action (extortion of income or resources by public officials) Corruption in Nigeria -- 70% of country's oil revenues were stolen | 19 | |
| 680985096 | representative democracy | a political system in which citizens periodically elect individuals to represent them -right to freedom of expression, opinion, organization -free media -regular elections where all citizens can vote -universal adult suffrage -limited terms for elected officials -court system separate from political system -nonpolitical state bureaucracy -nonpolitical police force -free access to state info | 20 | |
| 680985097 | right wing totalitarianism | a political system in which political power is monopolized by a party, group, or individual that generally permits individual economic freedom but restricts individual political freedom, including free speech, frequently on the grounds that it would lead to the rise of communism Latin America, South Korea, Taiwan, Singapore, Indonesia, Philippines USED to be | 21 | |
| 680985098 | theocratic totalitarianism | a political system in which political power is monopolized by a party, group, or individual that governs according to religious principles Islam- laws based on Islamic principles | 22 | |
| 680985099 | tribal totalitarianism | a political system in which a party, group or individual that represents the interests of a particular tribe (ethnic group) monopolizes political power Africa - Zimbabwe, Tanzania, Kenya, Uganda | 23 | |
| 680985100 | caste system | a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime HInduism- stratified by occupation dalits are at the bottom of the hierarchy, technically illegal to discriminate by caste but it still exists B. Ambedkar worked for the rights of dalits -- many converted to Buddhism | 24 | |
| 680985101 | class system | a system of social stratification in which the position a person has by birth can be changed through his or her own achievements or luck | 25 | |
| 680985102 | Confucian dynamism | theory that Confucian teachings affect attitudes towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors role relationships with mutual obligations examples of basic role relationships: ruler-subject master-servent parent-child husband-wife elder-younger brother (benevolence, protection - loyalty, obedience, respect) GUANXI- Chinese for personal relationships cultivated over time | 26 | |
| 680985103 | norms | social rules and guidelines that prescribe appropriate behavior in particular situations culture: religion, political philosophy, economic philosophy, education, language, social structure | 27 | |
| 680985104 | individualism v. collectivism | theory focusing on the relationship between the individual and his or her fellows; in individualistic societies, the ties between individuals are loose and individual achievement and freedom are highly valued; in societies where collectivism is emphasized, the ties between individuals are tight; people are born into collectives, such as extended families, and everyone is supposed to look after the interests of the collective individualism: high level of entrepreneurial activity, managerial mobility collectivism: Japanese "ka", identify themselves by company first rather than position. work together for the greater good. great loyalty to company (lifetime employment guarantee) | 28 | |
| 680985105 | uncertainty avoidance | extent to which different cultures socialize their members into accepting ambiguous situations and tolerating uncertainty | 29 | |
| 680985106 | power distance | theory of how a society deals with the fact that people are unequal in physical and intellectual capabilities. High power distance cultures are found in countries that let inequalities of power and wealth. Low power distance cultures are found in societies that try to play down such inequalities as much as possible | 30 | |
| 680985107 | social mobility | the extent to which individuals can move out of the strata into which they are born | 31 | |
| 680985108 | values | abstract ideas about what a group believes to be good, right, and desirable | 32 | |
| 680985109 | five pillars of Islam | 1. Statement of Faith 2. Daily prayers (6x a day) 3. Charitable giving 4. Fasting during Ramadan 5. Pilgrimage Sunni: emphasis on law, clergy de-centralized Shia: Jihad = struggle to live according to God, hierarchy of religious figures, atonement, martyrdom | 33 | |
| 680985110 | first mover advantages | by being the first to enter a new market, the business gains an advantage over its actual and potential rivals. this is true whether the business is seeking to develop new geographical/demographic markets or segments for existing products, or whether it is seeking to introduce new products to its existing market segments. familiar products, brand loyalty, the best retail outlets, up-and-running distribution systems Sony- built not only its strategy but its entire corporate philosophy around Ibuka's idea of 'doing things that no one else is willing to do'. for Ibuka, as for his friend and successor Morita Akio, developing leading-edge products and getting them to market faster than the competition was not so much a strategy as a personal obsession, and is considered one of the cornerstones of Sony's rapid growth and continued success. | 34 | |
| 680985111 | first mover disadvantages | must be a pioneer, incurring costs in terms of investment. technology must be invented, knowledge about new markets needs to be learned from scratch | 35 | |
| 680985112 | cross-licensing agreement | a firm would license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its know-how to the firm | 36 | |
| 680985113 | licensing agreement | occurs when a firm licenses the rights to produce its product, its production processes or its brand name or trademark to another firm; in return, the licensor collects a royalty fee from the licensee | 37 | |
| 680985114 | franchise | a specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on the rules to conduct the business | 38 | |
| 680985115 | joint venture | establishing a firm that is jointly owned by two or more otherwise independent firms | 39 | |
| 680985116 | pioneering costs | costs at an early entrant has to bear that a later entrant can avoid, such as the time and effort in learning the rules, failure due to ignorance, and the liability of being a foreigner | 40 | |
| 680985117 | strategic commitment | a firm's investments in tangible and intangible assets to support a particular way of doing business that is difficult to reverse | 41 | |
| 680985118 | wholly owned subsidiary | a subsidiary in which the firm owns 100% of the stock | 42 | |
| 680985119 | turnkey projects | a project in which a firm agrees to set up an operating plant for a foreign client and hand over the "key" when the plant is fully operational | 43 | |
| 682077344 | Parable Sadhu | individual vs. group ethic, no one wanted to take actual responsibility for the well being of the Sadhu. no consensus or plan. tend to individual need to benefit group as a whole | 44 | |
| 680985120 | Ruth's Chris | Market selection criteria: -high disposable income -beef eaters -urbanization | 45 | |
| 680985121 | Debate: Boycotting sweatshops | Yes: -successes include Burger King, Premier Oil, no fur policy through "Campaign Against the Fur Trade" -consumers feel responsible (social pressure) -business leaders consider boycotting more effective than letter writing, lobbying or class action suits No: -negative ripple effect (increased poverty) -GDP growth, increased employment, foreign investors -boost economy, standard of living, working benefits -conditions better than alternatives -multinationals expand in raw material/agriculture rich countries | 46 | |
| 680985122 | Debate: Outsourcing harms America | No: -global competition -lower cost of production and product, skilled expertise, time zone difference, re-investment in US, higher value/more productive jobs in us, focus on core competencies, increased productivity, distribution of risk, improved customer service, people management | 47 | |
| 680985123 | Debate: Climate change and food insecurity | Yes: -population growth and volatility of climate change -less food = higher prices -decrease 7% by 2060 -Sahel, Africa: temp above 120 F -unpredictable weather: floods and droughts | 48 | |
| 680985124 | Debate: Free trade is killing industry | Yes: -Chinese currency 40% undervalued -counterfeiting of US products -automobile industry: increased pressure on domestic brands -developing nations exports > developed nations -protectionism No: -1/3 jobs relies on exports -10th Index of Economic Freedom - fosters innovation = production potential, specialization -protectionist policies only advantage small groups of producers that don't want to compete | 49 |
